Costs of the war in Ukraine for Europe increase the longer it lasts

“The longer the war lasts, the greater the costs are likely to be,” said European Central Bank President Christine Lagarde, urging governments and investors to make funding available to strengthen Europe’s resilience. “Europe needs a plan to ensure that the necessary investment comes online as quickly and smoothly as possible, with public and private finance reinforcing each other.” Lagarde said Russia’s invasion poses “significant risks to the growth” of Europe and has introduced “considerable uncertainty” into the economic outlook. At the same time, sticky energy costs, increasing food prices, and persistent bottlenecks “are likely to take inflation higher,” she stated.

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